Annuities

[REDMAN2222]

Looking at retiring soon. Looking into annuities. Have no knowledge of how they work exactly, other than you put youre money in and they pay back with monthly income. Looks like they may have a good lifetime payback for income but, if you put your funds into an annuity, and say the life insurance company goes bust then what? You are out of luck, or what? Any advise on annuities would be appreciated. I wouldnt think annuities would be offered on the TSP site if they were a bad thing, but again looking for information. Would hate to put savings into an annuity and then loose it all.

 

[Frixxxx]

Looking at retiring soon. Looking into annuities. Have no knowledge of how they work exactly, other than you put youre money in and they pay back with monthly income. Looks like they may have a good lifetime payback for income but, if you put your funds into an annuity, and say the life insurance company goes bust then what? You are out of luck, or what? Any advise on annuities would be appreciated. I wouldnt think annuities would be offered on the TSP site if they were a bad thing, but again looking for information. Would hate to put savings into an annuity and then loose it all.

I recommend you check out our ANNUITY section. There are a few discussions on which way to go, but mostly those who post say it isn't a good way to go about it. METLIFE has been the preferred contract since I've been in civil service, so I presume that their assets and the way they handle annuities is safer than most. I always like to have control of my money, so I never consider this option. Too many ways for the annuity to not be realized by the holder. Plus, I like to have my money work for me with what I say gets done. I don't need someone else managing my money and getting a fixed return.

 

[REDMAN2222]

Thanks. I did finally find that section. I like controlling it also, and have been playing with the TSP C & S funds for the last year or two and have done really well I believe in my and my wife’s account. Money working for you IS THE WAY TO GO for sure. Doing 50/50 C & S now, like what I see and hope not to have to touch it till age 70 1/2 required minimum distribution. Looks like you are a C & S kind of person as well. It does get a little scary once in a while, but as they say "you pay your money, and you take you’re chances". Any idea of how you foresee the future with the upcoming elections? I personally am not worried and believe all will be well, just wondering how others may feel about it.

 

[Frixxxx]

Thanks. I did finally find that section. I like controlling it also, and have been playing with the TSP C & S funds for the last year or two and have done really well I believe in my and my wife’s account. Money working for you IS THE WAY TO GO for sure. Doing 50/50 C & S now, like what I see and hope not to have to touch it till age 70 1/2 required minimum distribution. Looks like you are a C & S kind of person as well. It does get a little scary once in a while, but as they say "you pay your money, and you take you’re chances". Any idea of how you foresee the future with the upcoming elections? I personally am not worried and believe all will be well, just wondering how others may feel about it.

Since we're outside the political discussion threads, I will say this: It depends on what businesses will be affected by the policies of those elected. But from an index perspective, I find that it normally means we'll consolidate, position, and then react.

The 2008 was an economic, political tsunami for the market. I believe that with earnings looking bad right now, we might hit consolidation early and move on from there, but if laws don't change, it will not be a bad thing for the market. Companies sitting on cash making them more valuable.